Toyota has become the first Japanese company to turn in net profits of more than one trillion yen.

The carmaker said its net profits rose 55% in the year to March 2003, to 1.16 trillion yen ($10.2bn; £5.8bn), with sales up in every major world market.

Toyota, Asia's biggest company, overtook Ford to become the world's number two carmaker after General Motors during 2003.

It is aiming for 15% of the world automobile market within a decade.

Toyota did not forecast what its sales and profits would be for the coming year.

TOP CARMAKERS IN 2003

1. GM: 8.59 million

2. Toyota: 6.78 million

3. Ford: 6.72 million

But it said unit sales would rise to more than 7 million worldwide.

"Clearly, we are benefiting from our efforts to strengthen our overseas operations and create a global business model that is more resistant to market fluctuations and currency risk," said Toyota's president, Fujio Cho, in a statement.

Like other Japanese exporters, Toyota has been worried about the decline of the US dollar and the rise of the yen.

But analysts warn that income from the US could also suffer from a limited range of new model and flattening demand for its enormously popular Prius hybrid cars, despite its strong brand.